Akzo Skirts Biotechnology Expense With Solvay-Style Partnerships

Akzo Nobel NV (AKZA) is working on a number
of partnership accords to incorporate biotechnology and more
environmentally sustainable raw materials into its paints and
coatings.

Europe’s biggest paintmaker signed a three-year agreement
with Solvay SA (SOLB) to increase use of that company’s bio-based
epichlorohydrin, which has a lower carbon footprint and is used
as a binder in coatings, Peter Nieuwenhuizen, Akzo Nobel’s
director of future-proof supply chains, said in a phone
interview today.

Akzo Nobel isn’t developing its own biotechnology for
greener feedstocks and is pursuing alliances with other
companies instead. It’s part of Chief Executive Officer Ton Buechner’s drive to update the Amsterdam-based company’s
approach to sourcing feedstock for plants and reducing reliance
on petrochemicals.

“You can spend your R&D euro only once,” said
Nieuwenhuizen, who took on his present role in January 2011.
“We’ve chosen very deliberately a strategy where we won’t
develop in-house. We will leverage our formulation know-how to
leverage the innovation of other people.”

Earlier this year, Akzo Nobel announced a tie-up with
Solazyme Inc. (SZYM) for tailored oils based on algae that can enhance
or replace oil-derived chemicals.

“These are very attractive partnerships for both sides,”
the executive said. For smaller companies with enzyme
technology, a partnership with Akzo provides a platform for
their products, he said.